American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

American Express Company

How Investing Has Changed in the Last 5 Years

Key Points
IBM trades at a fraction of Microsoft's and Nvidia's valuations despite leading positions in quantum computing and AI.
American Express continues its streak of beating analyst expectations while embracing blockchain and AI technologies.
Walmart is successfully borrowing strategies from Amazon and Costco while leveraging its massive physical footprint.
The Dow Jones Industrial Average (DJINDICES: ^DJI) market index is an elite club. Its 30 components are some of the best businesses in America, hand-picked and maintained by the five financial experts on S&P Global's Averages Committee.
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The Dow members jumped through many hoops to reach that lofty position, and most of them should be solid investments in any economy. The well-known "Dogs of the Dow" investing strategy even looks for Dow stocks trading at a discount, with the assumption that these giants will recover from short-term problems. It's not an infallible strategy, but still a famous and theoretically reasonable one.
But there are different levels of excellence even in this top-shelf group. Three of the current Dow stocks strike me as no-brainer buys right now.
1. IBM
Quantum computing and artificial intelligence (AI) are two of the hottest business trends on the planet right now. IBM (NYSE: IBM) is a leading player in both fields, but Big Blue's stock is lagging behind other quantum and AI winners.
I mean, the market is starting to catch on. IBM's stock gained 29% year-to-date as of this writing on Oct. 23. But it still looks undervalued trading at 4.0 times sales and 23.4 times forward earnings estimates.
Last week's earnings report underscored IBM's AI and quantum computing muscle. AI-based contracts rose to $9.5 billion, up from $7.5 billion three months earlier. On theearnings call IBM management celebrated technical advances in the quantum arena, targeting 2028 for the first error-corrected quantum computer.
And you can invest in IBM's thrilling technology at a deep discount. Fellow Dow members Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) also offer exposure to the AI and quantum computing trends, but their stocks are quite expensive. Microsoft trades at 11.3 times sales, while Nvidia's shares change hands at 44.3 times sales. IBM's price-to-sales ratio of 4.0 is a downright steal.
2. American Express
I don't get excited about bank stocks and financial services too often, but American Express (NYSE: AXP) makes the grade nowadays.
This longtime Warren Buffett favorite keeps beating analyst expectations, often with double-digit percentage growth on the top line and even stronger earnings gains. But it's more than just another boring bank-like success story.
American Express has always focused on customer service and unique card features. The legacy continues in 2025 as the company highlighted AI adoption among small businesses, added a substantial Squarespace credit to its business-class Gold card, and shipped a brand-new travel app built on the Ethereum (CRYPTO: ETH) blockchain.
There's nothing boring or old-school about American Express, despite its centennial history and Warren Buffett's deep-value stamp of approval. The stock is neither cheap nor too expensive, but it's a no-brainer investment with share prices in the Goldilocks zone. If American Express keeps up its winning ways and next-gen technology development, the premium prices should come later.
3. Walmart
And if you thought American Express was an unexpected guest on this list, the third name might downright shock you.
Good old Walmart (NYSE: WMT) is evolving before my eyes. The world's largest big-box retailer is borrowing entire chapters from the playbooks of Amazon (NASDAQ: AMZN) and Costco Wholesale (NASDAQ: COST), building its own take on e-commerce with a massive physical footprint.
In August's second-quarter report, Walmart's online orders grew 25% year over year. The shipping service is catching up to Amazon Prime's benefits in many ways, providing same-day delivery for paying members of the Walmart+ club. Like Costco's memberships and Amazon Prime's subscriptions, Walmart's customer loyalty program represents a low-cost stream of pure bonus revenue.
Here's one last surprise: Walmart stock comes with a premium price tag today.
The stock trades at 36 times forward earnings estimates, which is a lofty valuation for a business that redefined low-cost retail operations. Investors have noticed that Walmart is up to a whole bunch of new tricks, setting the stock up for great long-term returns. So the rich stock price makes sense, and it's a no-brainer buy right now.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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*Stock Advisor returns as of October 20, 2025
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in Amazon, Ethereum, International Business Machines, Nvidia, and Walmart. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Ethereum, International Business Machines, Microsoft, Nvidia, S&P Global, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 No-Brainer Dow Jones Stocks to Buy Right Now

Key Points
Focus on profitable, proven companies with strong brands and steady cash flow.
Buffett recommends S&P 500 index funds for long-term wealth building.
Compounding works best for those who stay invested through market cycles.
Few investors command the same level of respect as Warren Buffett, the billionaire chairman and CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Nicknamed the "Oracle of Omaha," Buffett has spent six decades compounding wealth at an extraordinary pace for the company -- generating a staggering 5,502,284% total return over that span.
To put that into perspective, Berkshire's long-term compound annual growth rate (CAGR) of 19.9% is roughly double the long-term performance of the S&P 500 (SNPINDEX: ^GSPC), even when accounting for dividend reinvestment in the index.
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While Buffett's track record is nearly unmatched, the good news is his investment strategy is surprisingly straightforward. His approach can be distilled into a few timeless principles -- simple enough for any first-time investor to follow, yet powerful enough to build generational wealth.
1. Focus on businesses you understand
Buffett's investing philosophy is refreshingly simple: Buy high-quality companies at fair prices and hold them for the long haul -- often decades. He avoids complex or speculative ventures, instead focusing on businesses with durable competitive advantages, steady earnings growth, and trustworthy management.
Buffett's portfolio reflects this discipline. It's concentrated in consumer staples, financial services, and energy -- sectors he believes will remain indispensable through all economic cycles. Berkshire's top holdings -- Apple, American Express, Bank of America, Coca-Cola, Chevron, and Occidental Petroleum -- share some common threads: predictable cash flow, powerful brands, and shareholder-friendly capital allocation programs.
Equally telling are the companies Buffett tends to avoid. He's long steered clear of unproven tech start-ups, cyclical industries, and commoditized businesses that lack pricing power.
For investors, his example underscores a timeless truth: Resist the temptation to follow herd mentality. In investing, such an approach is similar to being a victim of the greater fool theory. Instead, seek out businesses with a long record of profitability, reliable dividends, and management teams that treat shareholders as partners.
2. The power of passive investing
Buffett long acknowledged that most investors are better off buying index funds rather than picking individual stocks. His reasoning is simple: Over time, the S&P 500 mirrors the growth of the American economy. It's composed of world-class companies like Apple, Microsoft, Johnson & Johnson, Walmart, and JPMorgan Chase that consistently reinvest profits, raise dividends, and drive long-term wealth creation.
For first-time investors, buying an S&P 500 exchange-traded fund (ETF) through providers like Vanguard, Fidelity, or Charles Schwab is one of the smartest, most stress-free ways to follow Buffett's playbook. This approach provides instant diversification across hundreds of top U.S. companies -- with no need for market timing, stock picking, or guesswork.
3. Think long-term and stay consistent
Buffett's success never hinged on predicting market moves -- it's built on patience, discipline, and the power of compounding. He's held some of his core positions for decades, steadily reinvesting dividends and allowing time do the heavy lifting.
The key lesson for beginners is consistency. Invest regularly, reinvest your dividends, double down on winners, and trim laggards. Avoid chasing hot stocks, cryptocurrencies, or viral trends that promise quick riches but lack fundamental strength.
Market corrections and downturns will happen, but Buffett views them as opportunities, not setbacks. They allow disciplined investors to buy quality companies at attractive prices. As he has famously advised, "You want to be greedy when others are fearful, and you want to be fearful when others are greedy."
In the end, wealth creation is less about timing the market and more about spending long periods of time in the market. Staying calm, patient, and committed to your long-term plan is what separates successful investors from emotional traders -- and it's the mindset that turns ordinary savers into extraordinary investors.
Should you invest $1,000 in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, JPMorgan Chase, Microsoft, and Walmart. The Motley Fool recommends Charles Schwab, Johnson & Johnson, and Occidental Petroleum and recommends the following options: long January 2026 $395 calls on Microsoft, short December 2025 $95 calls on Charles Schwab, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett's Investing Playbook -- Simplified for First-Time Stock Buyers

Key Points
American Express has beaten the S&P 500 every year since 2021.
The company’s latest earnings reinforce its investment thesis.
American Express is benefiting from an affluent card member base.
American Express (NYSE: AXP) just rocketed to an all-time high after a blowout earnings report and a raised forecast.
At the time of this writing, the financial stock is up 20% year-to-date compared to 15% for the S&P 500 (SNPINDEX: ^GSPC) -- putting the Dow Jones Industrial Average (DJINDICES: ^DJI) component on track to beat the S&P 500 yet again. American Express has outperformed the S&P 500 every year since 2021. Which is impressive, considering that period of market gains has been driven largely by tech-focused growth companies and artificial intelligence stocks.
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Here's why American Express has what it takes to beat the S&P 500 and the Dow for years to come.
American Express's advantages are on full display
American Express issues its own credit cards, offers charge cards and personal loans, and collects processing fees. This is a drastically different business model from Visa (NYSE: V) and Mastercard (NYSE: MA), which are pure-play payment processors. Visa and Mastercard are less risky because they work with banks and financial institutions to issue cards. However, American Express has more growth potential, which was showcased in its latest quarter.
American Express's revenue net of interest expense rose by 11%, diluted earnings per share by 19%, and it reduced its share count by 2% compared to the third quarter of 2024. American Express raised its full-year 2025 forecast, with revenue growth of 9% to 10% and earnings per share of $15.20 to $15.50 compared to adjusted EPS of $13.35 in 2024. That's earnings growth of about 15% -- which would be a fantastic year for American Express.
American Express cardholder spending is rising
Perhaps the most important metric from the third-quarter 2025 report was an 8% foreign exchange-adjusted increase in card member spending. On the earnings call, American Express Chief Executive Officer Stephen Squeri attributed the uptick in cardmember spending to strong retail engagement and a rebound in travel. He also said that the company's credit performance continued to be excellent -- showcasing its ability to manage risk with low net write-off rates.
During the quarter, American Express launched its refreshed Platinum cards for U.S. consumers and businesses. The cards include higher fees but more perks, which can be a win-win for American Express and its card members. Squeri said the following on the earnings call:
I'm very pleased to say that the initial customer demand and engagement are exceeding our expectations. In fact, while it's still early, this is the strongest start we've seen for a U.S. Platinum card refresh. Before I get into more details on Platinum, I want to provide some context. We are fortunate to have a global premium customer base that is unmatched in the industry, and our goal is to provide our customers with the best experience in the industry.
The solid increase in card member spending, paired with the successful launch of the new Platinum card, showcases American Express's advantages in today's bifurcated economy. Broadly speaking, consumer spending on discretionary goods and services, and even staples, is under pressure from relatively high interest rates and rising living costs.
By catering to an affluent consumer base and charging high card fees, American Express's customer base isn't as stressed by the rising cost of living. In fact, the upticks in spending may be partly due to higher asset prices, from stocks to real estate and gold. So, even though high interest rates and home prices have made housing unaffordable for average Americans, American Express's strong results show that affluent consumer spending is actually on the rise.
Cardmember rewards are roughly double what American Express collects in membership fees. So, its customers are getting a great deal on its cards. But American Express still turns a hefty profit because of the fees it collects from merchants. This brilliant business model creates high customer loyalty and interest in its latest offerings (as shown with the success of the new Platinum card). American Express cardholders are incentivized to use the cards for the bulk of their spending, which means more perks for cardholders and more transaction fee revenue for American Express.
American Express checks all the boxes
Despite more than tripling during the past five years, American Express shares remain a solid buy for 2026.
The stock is still a good value and carries a less expensive valuation than Visa and Mastercard.
American Express generates plenty of extra cash to repurchase stock and increase its dividend at a breakneck rate. During the past five years, American Express has roughly doubled its dividend. And the stock still yields more than Visa and Mastercard, even after its recent price run-up.
By catering to affluent customers, American Express is resistant to some of today's most pressing economic challenges.
All told, American Express has an elite business model and remains an excellent choice for long-term investors.
Should you invest $1,000 in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
American Express is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: This Dividend-Paying Dow Jones Growth Stock Will Beat the S&P 500 For the 6th Consecutive Year in 2026

Key Points
American Express possesses pricing power, which supports the view that it’s a high-quality business.
Cardholders appreciate the incredibly valuable perks and rewards that they receive.
American Express (NYSE: AXP) is continuing its winning ways. Shares are up 18% in 2025 (as of Oct. 20), outpacing the broader S&P 500. They recently got a lift after the business reported third-quarter revenue and earnings per share that came in ahead of Wall Street estimates.
Those two key headline figures are certainly important to pay attention to. However, every American Express investor should keep a close eye on this number.
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American Express has proven pricing power
Some of the best companies in the world benefit from pricing power, or the ability to successfully ask customers to pay more over time. American Express possesses this attractive quality.
The average fee it earned per active card (on an annualized basis) in the third quarter was $119. This metric represents the membership dues that its customers pay to have the right to own an American Express card. It has increased consistently over the years, having climbed 72% since Q3 2020.
The company's brand supports its dominant position
American Express is able to charge high annual fees because of its powerful brand position that draws in higher-income consumers. What's more, the business offers its cardholders incredibly valuable perks and rewards.
For instance, the latest Platinum card refresh introduced new shopping credits at Lululemon and Resy restaurants. This helped drive twice as many average weekly sign-ups for new cards than prior to the update.
Should you invest $1,000 in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Every American Express (AXP) Investor Should Keep an Eye on This Number

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Express Co. (Symbol: AXP), where a total of 18,165 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 69.7% of AXP's average daily trading volume over the past month of 2.6 million shares. Especially high volume was seen for the $400 strike call option expiring September 18, 2026, with 1,502 contracts trading so far today, representing approximately 150,200 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $400 strike highlighted in orange:
Verisign Inc (Symbol: VRSN) options are showing a volume of 5,218 contracts thus far today. That number of contracts represents approximately 521,800 underlying shares, working out to a sizeable 69.7% of VRSN's average daily trading volume over the past month, of 748,300 shares. Particularly high volume was seen for the $250 strike put option expiring November 21, 2025, with 857 contracts trading so far today, representing approximately 85,700 underlying shares of VRSN. Below is a chart showing VRSN's trailing twelve month trading history, with the $250 strike highlighted in orange:
And DraftKings Inc (Symbol: DKNG) options are showing a volume of 141,817 contracts thus far today. That number of contracts represents approximately 14.2 million underlying shares, working out to a sizeable 69.5% of DKNG's average daily trading volume over the past month, of 20.4 million shares. Especially high volume was seen for the $32 strike put option expiring October 31, 2025, with 11,015 contracts trading so far today, representing approximately 1.1 million underlying shares of DKNG. Below is a chart showing DKNG's trailing twelve month trading history, with the $32 strike highlighted in orange:
For the various different available expirations for AXP options, VRSN options, or DKNG options, visit StockOptionsChannel.com.
Also see:
Cheapest Stocks Right Now
PulteGroup MACD
ADM Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: AXP, VRSN, DKNG

Bread Financial Holdings’ BFH operating income of $4.02 per share for the third quarter of 2025 beat the Zacks Consensus Estimate by 90.5%. The bottom line more than doubled year over year.
The quarterly results reflected higher credit sales and reduced non-interest expenses, offset by lower average and end-of-period loans as well as interest income.
Bread Financial Holdings, Inc. Price, Consensus and EPS Surprise
Behind the Headlines
Revenues decreased 1.2% year over year to $971 million, primarily due to lower billed late fees resulting from lower delinquencies, higher retailer share arrangements, and a $4 million gain on portfolio sale in 2024. It was partially offset by lower interest expense and the implementation of pricing changes and paper statement fees. The top line, however, beat the consensus estimate by 0.2%.
Credit sales of $6.8 billion increased 5% year over year, driven by new partner growth and increased general-purpose spending.
Average loan decreased 1% to $17.6 billion, while end-of-period loan declined 2% to $17.7 billion, due to an increasing payment rate and the ongoing effect of elevated gross losses.
Total interest income decreased 3% to $1.2 billion, in line with our estimate and the Zacks Consensus Estimate.
Net interest margin remains unchanged at 18.8%. The Zacks Consensus Estimate for the metric was 18.2%.
Total non-interest expenses decreased 17%, driven by the prior year impact from repurchased debt.
The delinquency rate of 6% decreased from 6.4% year over year. The net loss rate of 7.4% improved 40 basis points. Pre-tax pre-provision earnings increased 21% year over year to $495 million.
Financial Update
Tangible book value was $56.36 per share, as of Sept. 30, 2025, up 19% year over year. Return on average equity was 22.4%, which expanded 2,200 basis points year over year.
Capital Deployment
The board of directors raised the dividend by 10% to 23 cents per share. The dividend is payable on Dec. 12 to stockholders of record as of Nov. 7.
The board of directors approved a $200 million increase to the existing share repurchase authorization. The company had $140 million remaining under its existing share repurchase authorization, which brings the total amount available for share repurchases to $340 million.
2025 Guidance
Based on the current economic outlook, an increased payment rate, elevated gross credit losses, and visibility into the pipeline and existing partners, BFH projects average credit card and other loans to be flat to slightly down from 2024.
Total revenues (excluding any gain on portfolio sale) are expected to be relatively flat as a result of implemented pricing changes. It is offset by interest rate reductions by the Federal Reserve, lower billed late fees from improving delinquency trends, and a continued shift in risk and product mix.
BFH expects to deliver positive operating leverage, excluding any gain on portfolio sale and the pre-tax impacts from the repurchased debt, including convertible, senior, and subordinated notes.
The net loss rate is expected in the range of 7.8% to 7.9%. Net loss rate is expected to improve given a resilient consumer, credit management actions, and continued risk and product mix shifts.
Zacks Rank
Bread Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Release
American Express Company AXP reported third-quarter 2025 earnings per share (EPS) of $4.14, which beat the Zacks Consensus Estimate by 4.6%. The bottom line climbed 19% year over year. Total revenues, net of interest expense, amounted to $18.4 billion, which beat the Zacks Consensus Estimate by 2.4%. The top line improved 11% year over year in the quarter under review.
Network volumes of $479.2 billion rose 9% year over year in the third quarter, driven by higher U.S. consumer spending. The figure beat the Zacks Consensus Estimate by 1.2%. Total interest income of $6.6 billion increased 8% year over year and surpassed the consensus mark by 3.4%. Provision for credit losses fell 5% year over year to $1.3 billion, benefiting from lower reserve build.
Moody's Corporation MCO has reported third-quarter 2025 adjusted earnings of $3.92 per share, which outpaced the Zacks Consensus Estimate of $3.70. The bottom line grew 22.1% from the year-ago quarter. After considering certain non-recurring items, net income attributable to Moody's was $646 million or $3.60 per share, up from $534 million or $2.93 per share in the prior-year quarter.
Revenues were $2.01 billion, which surpassed the Zacks Consensus Estimate of $1.96 billion. Also, the top line rose 10.7% year over year. Total expenses were $1.09 billion, up 1.4% year over year. Adjusted operating income of $1.06 billion rose 22.5% year over year. The adjusted operating margin was 52.9%, rising from 47.8% a year ago.
Synchrony Financial SYF reported third-quarter 2025 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 28.8%. The bottom line gained 47.4% year over year. Net interest income was $4.7 billion, which grew 2.4% year over year. It surpassed the consensus mark by 0.6%. Retailer share arrangements of Synchrony advanced 12% year over year to $1 billion in the quarter under review.
Total deposits dipped 2% year over year to $79.9 billion and fell short of our estimate of $83 billion. Provision for credit losses was $1.1 billion, which tumbled 28.2% year over year on the back of a reserve release. The metric came in lower than our estimate of $1.5 billion.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BFH Q3 Earnings & Revenues Beat Estimates, Credit Sales Rise Y/Y

Key Points
Buffett favors companies with good management, reliable revenue, strong earnings, and a clear competitive moat.
Berkshire Hathaway's leader recognizes the importance of a diversified portfolio.
Warren Buffett can teach us a lot about investing. And he's got 60 years of credentials in leading Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to back it up.
Buffett favors a buy-and-hold investing style in which he looks for companies with strong management, a great competitive moat, impressive earnings, solid profits, and, ideally, a good dividend. From this formula, Buffett helped turn Berkshire Hathaway into a $1 trillion conglomerate.
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He also beats the market. Since he took the reins at Berkshire Hathaway, the company's investment portfolio has generated a compound annual gain of 19.9% versus the S&P 500's annual gain of 10.4% from 1965 through 2024. That means Berkshire Hathaway enjoyed gains of 5,502,284% versus the index's return of 39,054%.
And here's one more lesson that Buffett teaches -- the importance of diversification. Berkshire Hathaway's portfolio includes dozens of companies, some of them being the best-known in the world. Buffett knows that you shouldn't put all your eggs in one or two stocks. You need to spread it around.
So, let's create an ideal Buffett-inspired portfolio comprised of some of Berkshire Hathaway's holdings. Using fractional shares, we'll divide a hypothetical portfolio of $5,000 equally into four stocks, which represent a variety of industries. Here's how it shakes down, investing $1,250 into each.
Amazon
Buffett doesn't invest in a lot of tech stocks, but he made an exception for Amazon (NASDAQ: AMZN). Amazon has a dominant position as an e-commerce company, bringing in $136.8 billion in revenue in the second quarter alone. But Amazon Web Services (AWS) is the profit driver for Amazon stock, growing 17% from a year ago and accounting for more than half of Amazon's total profit.
Amazon stock is little changed on the year, but the company's growth story is clear, particularly as more companies look to migrate to the cloud -- where Amazon has a leading position with 30% of the global cloud computing market. You can buy 5.6 shares of Amazon stock with your $1,250 investment.
American Express
Berkshire Hathaway also has stock in Mastercard and Visa, but my pick here is American Express (NYSE: AXP) for a couple of reasons. First, the company has an extra income stream -- it not only issues cards like Visa and Mastercard, but it also has its own payment network from which it makes loans and earns income from the interest. American Express reported $5.4 billion in loan income in the third quarter of fiscal 2025, up 10% from a year ago.
American Express also offers a small dividend, with a yield of 0.9%, which is always a welcome addition to a portfolio. With the stock currently around $350, you'll get roughly 3.5 shares with your $1,250 investment.
Chevron
Chevron (NYSE: CVX) is a consolidated energy company that just got bigger. It recently completed its $55 billion acquisition of Hess, beating out ExxonMobil in a legal battle that gives Chevron access to the Guyana Stabroek Block's 11 billion barrels of oil.
The company's earnings have suffered this year as oil prices have fallen, but Chevron still prints money. Revenue of $44.8 billion in the second quarter was down from $51.2 billion a year ago. And earnings slipped from $4.4 billion and $2.43 per share to $2.49 billion and $1.45 per share.
But remember, you're buying Chevron here as a long-term play, and I don't mind getting in while it's slightly underperforming the market. The 4.4% dividend yield is a nice kicker as well. You can get just over eight shares of Chevron stock.
Coca-Cola
Remember, Buffett likes companies that have a great competitive moat. That's why when you're looking for consumer staples companies, Coca-Cola (NYSE: KO) stands out. Coca-Cola has a 48% market share in the U.S. soft drink market, and it also sells water, sports drinks, juices, coffee, and alcohol-infused drinks.
The company just posted third-quarter earnings, in which net revenue jumped by 5% from a year ago to $12.5 billion and earnings per share rose 30% to $0.86. Coca-Cola also provides a dividend yield of 3% -- making this a delicious addition to your portfolio.
Priced at just $71, you can add more than 17 shares of Coca-Cola stock with your $1,250 allotment.
The power of compounding
There are a lot of ways you can make a Buffett-flavored portfolio for the long term. And while this is just a suggestion, the most important thing you can do is to consistently add to your holdings and reinvest your dividend returns to accelerate your growth.
Over time, and by using the power of compounding returns, you will be able to watch your portfolio grow -- just like Warren Buffett.
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American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Chevron, Mastercard, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Warren Buffett Stocks to Buy With $5,000 Right Now

Key Points
American Express' success comes from its wide economic moat, which protects its competitive position.
The company has a strong brand and a powerful network effect.
It's strikingly clear that American Express (NYSE: AXP) has made for an exceptional investment. In the past five years, shares have produced a total return of 260% (as of Oct. 20). They trade at an all-time high these days, most recently buoyed by strong financial performance for the third quarter.
The current valuation might be expensive. However, there are still two brilliant reasons that investors should be excited about American Express stock right now.
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American Express has a wide economic moat
The first reason investors will immediately like this business is because of its powerful brand. American Express offers credit cards at the premium end of the market. They attract an affluent customer base that's willing and able to pay the high annual membership fees to gain access to top-notch perks and rewards.
Having a wealthy clientele helps the business post charge-off rates below the rest of the industry.
American Express has a wide economic moat. Besides the brand, the company benefits from a network effect. It operates the payment platform with what's called a closed-loop system. As the number of American Express active cards increases, the network becomes more valuable to merchants because there's a valuable customer base.
And with more merchants on the network, consumers have more places to shop, which boosts the value proposition.
Should you invest $1,000 in American Express right now?
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American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Brilliant Reasons to Be Excited About American Express (AXP) Stock

Visa Inc. V is set to report its fourth-quarter fiscal 2025 results on Oct. 28, 2025, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.96 per shareon revenues of $10.61 billion.
The estimate for fiscal fourth-quarter earnings has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 9.2%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 10.3%.
Image Source: Zacks Investment Research
For fiscal 2025, the Zacks Consensus Estimate for Visa’s revenues is pegged at $39.85 billion, implying a rise of 10.9% year over year. The consensus mark for EPS is pegged at $11.43, suggesting a jump of around 13.7% on a year-over-year basis.
The payments juggernaut has a robust history of surpassing earnings estimates. It beat estimates in each of the last four quarters, with the average being 3.9%. This is depicted in the graph below:
Visa Inc. Price and EPS Surprise
Q4 Earnings Whispers for Visa
Our proven model predicts a likely earnings beat for Visa this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s precisely the case here.
Visa has an Earnings ESP of +3.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Visa’s Q4 Results
The Zacks Consensus Estimate suggests a 6.2% increase in total Gross Dollar Volume from the previous year, while our model predicts 5.5% growth. The growing adoption and popularity of digital payment methods are likely to contribute positively to Visa's overall fiscal fourth quarter results.
As the company draws revenues as a set percentage of total transaction value every time a customer makes payments with a debit/credit card, higher spending means more revenues in the form of transaction processing fees. The Zacks Consensus Estimate for fiscal fourth-quarter total processed transactions indicates 10% year-over-year growth, whereas our model predicts a 9.5% increase.
The consensus mark for total payment volumes indicates an 8.6% year-over-year increase. We expect the metric for U.S. operations alone to jump 7.3% year over year. Similarly, our model predicts 9.5% year-over-year growth in Latin America and 15.6% in CEMEA.
The Zacks Consensus Estimate for data processing revenues indicates 13.3% growth in the fiscal fourth quarter from the year-ago level of $4.6 billion, while our estimate suggests a 13.9% increase. Similarly, the consensus mark for service revenues suggests 10.2% year-over-year growth, whereas we expect the metric to grow by 9.3%.
Furthermore, the consensus estimate for international transaction revenues indicates 11.5% growth from a year ago, whereas our model predicts an 8.4% increase. Continuous growth in cross-border volumes is expected to have supported the metric.
The factors stated above are expected to have positioned Visa for strong year-over-year growth and an earnings beat in the fiscal fourth quarter. However, rising expenses and client incentives (a contra-revenue item) are likely to have partially offset the positive impact of higher volumes.
We expect adjusted total operating expenses for the quarter under review to increase 10.6% year over year due to increased Personnel, Professional Fees, G&A and Network and Processing expenses. Also, both the Zacks Consensus Estimate and our model estimate for client incentives suggest that the metric will be well above $4 billion in the fiscal fourth quarter.
Visa Price Performance & Valuation
Visa's stock has gained 9.3% in the year-to-date period. It outperformed the industry’s 5% decline butunderperformed the S&P 500’s rise of 15.5%. In comparison, its peers like Mastercard Incorporated MA and American Express Company AXP have increased 8.5% and 18.6%, respectively, during this time.
Price Performance – V, MA, AXP, Industry & S&P 500
Image Source: Zacks Investment Research
Now, let’s look at the value Visa offers investors at current levels.
The company’s valuation looks somewhat stretched compared with the industry average. Currently, Visa is trading at 26.68X forward 12-month earnings, above the industry’s average of 21.48X.
Image Source: Zacks Investment Research
In comparison, Mastercard is even less attractively valued, trading at 30.88X forward 12-month earnings. American Express, on the other hand, is trading at 20.70X, offering a better value at the moment.
How Should You Play Visa Ahead of Q4 Earnings?
Visa’s stablecoin initiatives mark a defining shift in global payments, positioning the company to own a significant chunk of the infrastructure powering digital currencies rather than compete with them. By integrating stablecoins into its settlement network, Visa unlocks capital efficiency and faster cross-border transactions for banks, fintechs and enterprises. Regulatory clarity under the GENIUS Act further strengthens its long-term growth prospects. While competition from retail giants and ongoing antitrust scrutiny pose risks, Visa’s strong network effects, steady innovation and robust shareholder returns offer resilience.
However, its current valuation suggests limited near-term upside, with shares outpacing peers like Mastercard but lagging the S&P 500. The upcoming earnings report will be crucial to gauge momentum across its stablecoin rollout, international expansion and value-added services. For now, investors may find it prudent to hold Visa, monitor its upcoming results and wait for clearer catalysts before increasing exposure.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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